Digi Power X Enters into Amended and Restated Sales Agreement

• Digi Power X Inc. entered into an amended and restated At-The-Market (ATM) equity offering agreement with Alliance Global Partners on April 9, 2026.
• The program authorizes the sale of up to US$75 million in subordinate voting shares at management's discretion.
• Proceeds are designated for general corporate purposes: working capital, Tier 3 data center construction, debt repayment, and potential acquisitions.
• Sales will occur on Nasdaq Capital Market or other U.S. venues; no sales permitted in Canada under this agreement.
• The company retains the right to terminate the program at any time.

• Liquidity vs. Dilution: While the $75M capacity significantly bolsters cash reserves, it is notable that the company reported ~$93M in liquid assets (cash + crypto) as of March 31, 2026. Raising additional equity when liquidity is already robust suggests aggressive M&A plans or a desire to lock in capital at current valuations rather than operational necessity.
• Execution Risk: The news supports the previously announced AI infrastructure build-out but does not guarantee revenue realization. The company targets first AI revenues in April 2026; this financing ensures they can fund construction if customer demand materializes as projected ($282M run-rate).
• Market Sentiment Context: Given the stock's decline from $8.89 (Nov 2025) to ~$3.79 (Feb 2026), selling equity at these levels is highly dilutive compared to recent highs, though it avoids distress financing.
• Routine Nature: This follows a pattern of ATM activity seen in late 2025 ($200M program previously amended). It is an expected step for a capital-intensive infrastructure pivot rather than a surprise catalyst.

• Business Model: Transitioning from cryptocurrency mining to AI infrastructure, focusing on Tier 3 data centers and GPU-as-a-Service (NeoCloudz platform).
• Flagship Project: ARMS 200 modular AI-ready data center pod, which achieved Tier III certification in late 2025.
• Capacity Targets: Targeting 400MW of AI capacity across Alabama, New York, and North Carolina by 2027; currently operating with ~196.7MW available power.
• Strategic Pivot: Moved from Bitcoin mining to high-density GPU clusters (NVIDIA B200/B300) integrated with Supermicro hardware.